I hope this message finds you well.
I have been doing intense research into whether forex trading is halal or haram. I see that every scholar says it is haram but the aspect of it being that there is interest and that there is leverage involved.
I messaged a broker to find out if it is possible to have an account that has 0 interest and 1:1 leverage. Will this be permissible in Islam to do?
Your reply would be most beneficial.
I’ve done research myself… the problem is not with leverage 1:1. The problem is with The cfd. You dont have any ownership over that currency
And we cant sell something we dont have.
Walaikumsalam Brother Omar,
Thank you for your reply. Seeing as stock trading is my only other option, would you say it is similar to how fx trading works? I used in my demo on fx trading stuff like pivot points, trends, support and resistance as well as Japanese candle sticks.
Also, which broker would be best and permissible to use? As well as which platform does stock trading use. Fx would ultimately be used in mt4.
Yes the market nature is the same on all
Markets. When it comes
To patterns… note that the stock market is much slower so you have to be more patient. Because fx market is open 24 hours and the stock market is open for 6-8 hours.
So i advice to stick strictly to your trading plan and risk management.
For the broker depending on where u live. You have to choose an account that doesn’t have cfd.
So it would be a isa or invested account
And make sure when u have an invested account that the broker doesnt lend your share to short sellers… or it will be prohibited.
For broker i would advice you to let the mufti review the broker before using it.
Thank you for your generous advice. Alhumdulilah this is very useful and I will study properly.
Also, any online place you can recommend to learn. I used to use baby pips for forex. Is there something similar for stocks?
Also, I forgot to mention, is it permissible to trade commodities like gold, oil, coffee etc